Cash flow generation is inconsistent, evidenced by a 2026Q3 operating cash flow of -$1.3M despite reporting $1.3M in net income, largely driven by unpredictable working capital swings.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 |
|---|
| Cash from Operations | -344.4K | 447.27K | 2.91M | 2.01M | 3.06M | 15.73M | 3.97M | 4.93M | 15.71M | 454.37K | 1.66M | 5.08M | 18.63M | 13.85M | 8.11M | 13.92M | 8.67M | 1.23M | 3.77M | -123.53K | 2.41M | 243.87K | -1.71M | -2.18M | -1.13M | -6.2M | -4.35M | -800K | -113.2K |
| Operating CF Margin % | - | 0.68% | 4.74% | 3.84% | 5.35% | 28.63% | 7.05% | 7.27% | 25.79% | 0.7% | 2.57% | 9.95% | 51.22% | 27.26% | 20.4% | 38.09% | 23.57% | 4.66% | 10.29% | -0.42% | 12.92% | 1.96% | -29.79% | -58.22% | -31.63% | -92.13% | -62.22% | -26.67% | -67.05% |
| Operating CF Growth % | -358.16% | -84.63% | 44.78% | -34.34% | -80.54% | 295.88% | -19.48% | -68.61% | 3358.52% | -72.61% | -67.33% | -72.75% | 34.59% | 70.67% | -41.73% | 60.58% | 603.95% | -67.35% | 3153.59% | -105.12% | 889.98% | 114.24% | 21.45% | -92.64% | 81.74% | -42.6% | -443.26% | -606.7% | - |
| Net Income | 1.77M | 4.57M | 2.08M | -4.14M | 1.1M | 2.26M | 937.08K | 12.02M | 7.15M | -1.74M | 5.06M | -5.25M | -12.94M | 12.09M | 6.65M | 9.7M | 1.39M | -8.05M | 7.22M | -5.46M | -1.35M | 663.33K | -2.97M | -2.14M | -6M | -12.56M | -3.4M | -1.6M | -585.48K |
| Depreciation & Amortization | 1.29M | 1.46M | 1.72M | 3.24M | 3.81M | 3.96M | 3.73M | 4.42M | 5.57M | 6.56M | 7.15M | 10.34M | 8.73M | 5.7M | 4.64M | 4.29M | 3.91M | 4.19M | 3.34M | 5.46M | 3.12M | 1.98M | 2.07M | 1.58M | 2.12M | 1.51M | 1.41M | 400K | 1.81K |
| Stock-Based Compensation | 279.63K | 208.12K | 308.57K | 317.45K | 104.35K | 342.15K | 0 | 1.13M | 1.86M | 2.76M | 1.53M | 2.1M | 1.27M | 717.28K | 216.45K | 886.22K | 0 | 0 | 837.6K | 1.07M | 0 | 0 | 0 | 0 | 856.05K | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.84M | 0 | 0 | 0 | 0 | 0 | 207.99K | -617K | 0 | 0 | 823.66K | 870.86K | 0 | 0 | 0 | 0 | -856.05K | -2.85M | -250K | 0 | 0 |
| Other Non-Cash Items | 688.11K | 397.61K | -131K | 3.84M | 2.46M | -356.29K | 1.83M | 1.28M | 3.73M | 4.2M | 1.75M | 1.63M | 1.33M | 1.49M | 824.93K | 1.47M | 9.14M | 4.91M | 192.25K | 3.44M | 1.25M | 357.69K | -7.29K | -276.91K | 960.05K | 8.96M | 1.02M | 600K | 419.56K |
| Working Capital Changes | -6.36M | -6.19M | -1.07M | -1.24M | -4.42M | 9.52M | -2.53M | -13.92M | 241.23K | -8.57M | -12.3M | -1.64M | 21.51M | -5.44M | -4.43M | -1.81M | -5.78M | 178.74K | -8.64M | -5.5M | -604.22K | -2.76M | -806.26K | -1.34M | 1.79M | 228.99K | -3.14M | -200K | 50.9K |
| Change in Receivables | -15.54M | 245.29K | -1.9M | -6.86M | -5.67M | 6.86M | 846.44K | -2.81M | -10.47M | 5.1M | -6.32M | -2.05M | 6.79M | -2.12M | 1.77M | -3.42M | -1.32M | -4.68M | 0 | 0 | 0 | 0 | 0 | 0 | 1M | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | -709.76K | -1.12M | -474.1K | 0 | 47.82K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.48M | 0 | 0 | 0 | 46.89K |
| Change in Payables | 1.06M | -197.31K | 1.61M | 709.76K | 1.12M | 474.1K | -1.4M | -47.82K | 1.65M | 751.84K | 558.03K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 971.46K | 0 | 0 | 0 | 0 |
| Cash from Investing | -2.74M | -1.27M | -291.54K | -1.4M | -2.26M | -2.52M | -2.05M | -3.65M | -3.69M | -2.73M | -3.67M | -3.03M | -14.74M | -14.47M | -11.41M | -17.8M | -10.22M | -9.43M | -10.13M | -7.64M | -8.52M | -4.7M | -3.41M | 678.78K | -90.62K | 308.85K | -3.42M | -400K | 34.37K |
| Capital Expenditures | -2.9M | -1.38M | -515.4K | -1.64M | -2.61M | -2.55M | -1.38M | -2.73M | -2.45M | -2.2M | -3.34M | -3.56M | -16.62M | -13.79M | -11.08M | -17.18M | -10.59M | -8.76M | -4.44M | -2.42M | -7.74M | -1.47M | -2.86M | -127.82K | -126.28K | -586.15K | -1.55M | -200K | -3.74K |
| CapEx % of Revenue | 4.03% | 2.09% | 0.84% | 3.13% | 4.56% | 4.65% | 2.44% | 4.02% | 4.02% | 3.37% | 5.17% | 6.97% | 45.68% | 27.15% | 27.85% | 47.01% | 28.79% | 33.11% | 12.11% | 8.27% | 41.4% | 11.81% | 49.78% | 3.41% | 3.53% | 8.71% | 22.17% | 6.67% | 2.21% |
| Acquisitions | 17.21K | 0 | 0 | 179.08K | -601.29K | -155.5K | 16.75K | -567.5K | -33.99K | 781.02K | -767.4K | -577.22K | 1.79M | -799.35K | -253.19K | 0 | 0 | -742.99K | -879.01K | -4.03M | 473.89K | 88.74K | 75.49K | 0 | 0 | -105K | -119.52K | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 147.25K | 107.91K | 223.87K | 61.12K | 950.35K | 188.23K | -600K | -355.62K | -1.92M | 581.02K | 986.43K | 1.1M | 88.64K | 118.43K | -6.12M | 313.94K | 641.48K | 65.1K | -4.81M | -3.3M | -20K | -3.5M | -229.3K | 92.27K | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 326.34K | 822.88K | 239.55K | -718.99K | -1.38M | -1.17M | 1.7M | 17.17K | -1.02M | 4.38M | 598.18K | 1.46M | -233.14K | 1.69M | 9.09M | 4.27M | 1.71M | 6.57M | 8.53M | 9.17M | 7.15M | 4.83M | 5.72M | 1.43M | 1M | 3.21M | 10.66M | 1.2M | 40.24K |
| Debt Issued (Net) | -2.22M | 2.15M | 239.55K | -657.87K | -328.26K | 1.2M | 3.61M | 746.93K | -260.86K | 5.63M | 382.88K | -2.67M | 363.54K | 1.16M | -2.6M | -156.21K | 3.45M | 10.41M | 2.02M | 2.52M | 5.58M | 1.25M | 2.5M | 218.9K | 207.57K | -281K | 251.65K | -279.6K | 0 |
| Equity Issued (Net) | 1.42M | -1.02M | 0 | -61.12K | -1.05M | -2.36M | 11.62K | -250.94K | -750.71K | -38.88K | 64.93K | 2.29M | 0 | 0 | 5.74M | 4.1M | -1.07M | 629.63K | 3.23M | 2.04M | 2.07M | 2.72M | 3.27M | 1.21M | 786.1K | 3.04M | 7.59M | 1.69M | -20K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -389K | -341.66K | -1.29M | -43.83K | -33.51K | -178.54K | -77.64K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 1.5M | -1.5M | 0 | -61.12K | -1.05M | -2.36M | 0 | -250.94K | -750.71K | -38.88K | 0 | 0 | 0 | -194 | 0 | 0 | -1.92M | -641.67K | -35.49K | 0 | 0 | -51.7K | -21.46K | 0 | 0 | 0 | -68.65K | 0 | -20K |
| Other Financing | 1.13M | -306.8K | 0 | 0 | 0 | 0 | -1.92M | -478.82K | -5.19K | -1.21M | 150.37K | 1.84M | -596.69K | 914.84K | 6.29M | 1.62M | -628.75K | -4.44M | 3.46M | 4.53M | -502.55K | 859.22K | -57.78K | 0 | 9.65K | 453.25K | 2.82M | 187.05K | 60.24K |
| Net Change in Cash | -4.03M | -1.77M | 3.59M | -8.43M | -9.74M | 13.54M | 2.8M | -4.72M | 7.92M | 2.62M | -2.61M | 2.71M | 3.59M | 274.71K | 3.43M | 97.26K | -328.22K | -1.87M | 2.27M | 1.52M | 1.12M | 500.57K | 656.67K | 127.58K | -219.21K | -2.67M | 2.9M | 0 | -38.6K |
| Free Cash Flow | -2.21M | -935.5K | 2.39M | 370.13K | 451.42K | 13.17M | 2.6M | 2.21M | 13.26M | -1.75M | -1.68M | 1.52M | 2.01M | 54.48K | -2.97M | -3.26M | -1.92M | -7.52M | -663.71K | -2.54M | -5.32M | -1.22M | -4.57M | -2.31M | -1.26M | -6.78M | -5.89M | -1M | -116.94K |
| FCF Margin % | -3.06% | -1.42% | 3.9% | 0.71% | 0.79% | 23.99% | 4.6% | 3.25% | 21.77% | -2.68% | -2.6% | 2.98% | 5.53% | 0.11% | -7.46% | -8.92% | -5.22% | -28.45% | -1.81% | -8.69% | -28.48% | -9.85% | -79.57% | -61.63% | -35.16% | -100.84% | -84.39% | -33.33% | -69.26% |
| FCF Growth % | -136.49% | -139.08% | 546.79% | -18.01% | -96.57% | 407.64% | 17.61% | -83.36% | 858.5% | -4.29% | -210.35% | -24.54% | 3595.79% | 101.84% | 8.98% | -69.71% | 74.48% | -1033.74% | 73.91% | 52.21% | -334.68% | 73.23% | -98.18% | -83.46% | 81.45% | -15.09% | -489.42% | -755.15% | - |
| FCF per Share | -0.19 | -0.08 | 0.21 | 0.03 | 0.04 | 1.15 | 0.22 | 0.19 | 1.18 | -0.16 | -0.16 | 0.16 | 0.22 | 0.01 | -0.48 | -0.66 | -0.51 | -2.78 | -0.26 | -1.40 | -3.65 | -0.83 | -5.80 | -5.12 | -4.19 | -30.21 | -30.49 | -11.60 | -0.03 |
| FCF Conversion (FCF/Net Income) | -1.25x | 0.15x | 4.25x | -0.38x | -3.60x | 8.84x | 4.24x | 0.41x | 3.65x | -0.09x | 0.49x | -0.92x | -1.64x | 1.76x | 3.32x | 2.43x | 6.22x | -0.15x | 0.52x | 0.03x | -1.78x | 0.37x | 0.58x | 1.02x | 0.19x | 0.44x | 1.28x | 0.50x | 0.19x |
| Interest Paid | 840K | 841.96K | 1.58M | 679.92K | 433.08K | 455.65K | 0 | 293.97K | 390.65K | 225.64K | 251.55K | 162.9K | 325.69K | 510.03K | 822.27K | 1.04M | 1.42M | 1.24M | 559.16K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -193.1K | 1.41M | 704.87K | 982.73K | 1.23M | 601.7K | 0 | 848.5K | 700.13K | 195.73K | 391.29K | 503.92K | 402.48K | 25.19K | 29.94K | 5.72K | 117.81K | 12.82K | 118.53K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Project-based cash flow volatility
As reported in financial statements, NetSol's operating cash flow frequently decouples from net income, evidenced by a 2026Q3 operating cash flow of -$1.3M against $1.3M in net income, suggesting that accounting profits are not consistently translating into the liquid resources required for sustainable operational self-funding.
The persistent gap between net income and operating cash flow indicates that earnings are heavily influenced by non-cash accruals or timing differences in revenue recognition. Investors should monitor whether this divergence reflects aggressive revenue booking on long-term contracts that have yet to reach cash-generative milestones.
Based on recent quarterly filings, NTWK's free cash flow trajectory remains highly erratic, swinging from a positive $4.8M in 2026Q1 to a negative $5.1M in 2026Q2, which highlights the inherent difficulty in predicting cash generation for a business model reliant on lumpy, project-based implementation cycles.
The lack of a stable free cash flow trend suggests that the company's transition to a SaaS model has not yet smoothed out the cash flow profile. This volatility may force management to maintain higher cash balances than would otherwise be necessary to buffer against periods of negative cash burn.
According to the provided cash flow data, working capital fluctuations are the primary driver of cash volatility, with a significant $7.1M inflow in 2026Q1 followed by a $6.1M outflow in 2026Q2, indicating that client payment cycles and project milestones exert outsized pressure on liquidity.
The sensitivity of cash flow to working capital changes suggests that NetSol's liquidity is highly dependent on the timing of large-scale project payments from automotive clients. Such reliance on specific client payment schedules introduces a layer of operational risk that can mask the underlying health of the core software business.
As indicated by the financial data, NetSol maintains a disciplined approach to capital expenditure, with CapEx as a percentage of revenue averaging roughly 3% over the last ten quarters, suggesting that the firm is not overly burdened by the need for heavy physical asset replacement.
While the low capital intensity is a positive feature for a software provider, it also implies that the company's primary investment is in human capital rather than infrastructure. Analysts should investigate whether this level of spending is sufficient to keep the NFS Ascent platform competitive against larger, better-funded global peers.
Quick answers to the most common questions about buying NTWK stock.
NetSol Technologies, Inc. (NTWK) generated $0.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
NetSol Technologies, Inc. (NTWK) reported negative free cash flow of $0.9M in 2025, indicating capital requirements exceeded cash from operations.
NetSol Technologies, Inc. (NTWK) spent $1.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, NetSol Technologies, Inc. (NTWK) spent $1.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.